MGDMU PROJECT
Group 8 Section B Amelie Swaton Sameer Shankar Sumit Kumar
Pharma Industry Overview • By 2007 end, Indian Pharma Industry $10.1 billion, World $ 695 billion • 12% growth in last quarter in spite of rupee appreciation, fuelled mainly by exports • Increase in exports due to growth in sales of generics and increase in Contract Research and Manufacturing( CRAMS) • Drugs with revenues of $ 40 billion in US and $ 12 billion in Europe expected to go off patent by 0708 • Increased RnD expediture n Initiatives of Indian firms • $2.2 changed hands in MNAs involving Indian cos
SWOT Analysis of Indian Pharma Industry
Regulations • Indian Patents Act, 1970 allowed product patents for non chemical substances but only process patents for chemical substances including pharmaceuticals • Patent Law ( 1st Jan 2005) – products patented before 1995 can be manufactured by anybody, but after cannot be till the patent expires - few life saving products Patented till 2015, also made by local players using non-infringingprocess and sold in non regulated countries
Regulations Contd… • Product and Quality Regulations - Drugs and Cosmetics Act 1940 - DCGI overseas conduct of clinical trials, approvals and registration of drugs and issues licenses for manufacturing and marketing • Price Regulations - Drugs Price Control Order 1970 - to protect interest of consumers and ensure a restricted but reasonable return to producers
Opportunities in International Pharma Market for India •
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Export of Generics - 2004-2009 drugs with annual sales of USD 65 b will go off patent - advantage India due to strong reverse engg n chemistry skills and low cost of prod. - 5% share of DMFs n 25% of ANDA fillings Contract Research and Contract Manufacturing As International Manufacturing Base - Technical Competence - Manufacturing Competence - Regulatory Compliance - Low prod. Cost- low capital, labour and clinical trial cost
The company • India’s third biggest pharmaceutical company • Top pharmaceutical company in terms of turnover and profitability • Vertically integrated pharmaceutical company present in more than 100 countries.
History • Founded in 1984 by Dr. K. Anji Reddy • 1993 it started drug discovery program (Dr.Reddy’s Research Foundation) • 1994 a GDR (Global Depository Receipt) issue was successfully made (worth US$ 48 million) • Acquisitions : – 1999 American Remedies Limited, an Indian pharmaceutical company – In 2001 BMS Laboratories Limited and Meridian Healthcare in United Kingdom • 2001, becomes the first pharmaceutical company in Asia Pacific region outside Japan to be traded on the NYSE • December 2006 its revenues touched USD 1 billion
Strategy/ Growth option BUSINESS MODEL Market bulks drugs and Formulations at Affordable prices
Discovery led Global company
Generics
Supplier to Indian Drug manufacturers
Export bulk drugs
Over the last decade Sales grew by a CAGR of 29.49% while in the same period Net profit grew by CAGR of 37.47%
References & Source • CapitaLine Database • Dr. Reddy Laboratories website www.drreddys.com • CRISIL database • ICRA reports • Annual Reports • Cygnus Industry Analysis, Pharma Industry